income and loan amout ratio, and comfort level

Here is my calculation.

Total loan amount $1M
rental income $2200/month

Two loans:
1. $730K super conforming, 30 year fixed, rate 6.625%, $4674/month
2. $270K equity line, rate 4.5% and dropping, $1368/month

Total mortgage payment $7042

Property tax : $1750/month
Insurance: $130/month
maintenances: $100/month (gardening for rental property)

Total cost monthly = $9022/month

less rental income = $6822/month

With 30% threshold, annual income = ($6822 * 12 * 10) / 3 = $272,880

I feel pretty comfortable with this. In fact I am looking forward to the tax benefit due to the higher mortgage payment and tax free income from the rental property.

I hope that this clarifies my position.